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Daniel J. Mitchell of the Libertarian oriented Cato Institute writes in Forbes that the European Central Bank has finally taken the red pill. They've figured out that the greatest obstacle to a society becoming wealthy is out of control government. It sure took them long enough. But eventually even central bankers figure things out. Governments have always been the greatest enemy of the common man. By taking power over economic policy and then attempting to control outcomes they eventually do far more harm than good. Keeping interest rates low is a time proven method for blowing bubbles that eventually pop at the worst possible time. This is exactly what has occurred in the US for the past 100 years since the Federal Reserve was passed through congress.

The solutions to this conundrum are not pleasant and will cause far more pain than if this was never allowed to happen. There isn't a government in the world that is willing to cut its budget by 50 or more percent, even though it is in the country's best long range interest. Therefore, they are running from the collapse towards a greater collapse. This theme has been play out continually throughout human history and it is in the process of being done yet again.

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